The Hindu Business Line : Mills call for cut in customs duty on synthetic yarn

Mr Vinod K. Ladia (left), Chairman, Indian Cotton Mills' Federation, with Mr R.L. Toshniwal, President, Indian Spinners' Association, at a press conference in the Capital on Wednesday. - Kamal Narang

New Delhi , Dec. 22

THE domestic mills sector has called for a lowering of customs duty on synthetic yarn to check exploitative pricing by domestic suppliers.

The Chairman of Indian Cotton Mills' Federation (ICMF), Mr V.K. Ladia, said the country's synthetic yarn production had stagnated at six lakh tonnes per annum since 1997 due to the polyester staple fibre (PSF) duopoly of Reliance and Indo Rama.

"The producers need to look at their prices and try to expand the market, instead of trying to squeeze more profits from the stagnating market," he said.

Speaking at the ICMF press conference, Mr R.L. Toshniwal of the Indian Spinners' Association, said: "The increasing difference between prices of cotton and synthetic yarn was a major cause of concern for the spinning industry."

He said that in the case of pure cotton, India has close to 25 per cent of the market. "It is the markets for blended and synthetic textiles that India will have to look at to increase its share of international trade. If prices of synthetic yarn continue to be high our blended and synthetic products will become uncompetitive," he said.

He said while the Government could help by bringing down excise on synthetic yarn and reducing customs duty, producers would also strive to reduce their prices.

"While the Government seems open to the idea of reducing excise on synthetic yarn, the decrease in customs duty will check arbitrary pricing by Indian manufacturers," he said.

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